Brookfield Business Partners L.P. (NYSE:BBU) Q4 2018 Earnings Conference Call Transcript

Feb 08, 2019 • 11:00 am ET


Brookfield Business Partners L.P. (NYSE:BBU) Q4 2018 Earnings Conference Call Transcript


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Welcome to the Brookfield Business Partners' 2018 Yearend Results Conference Call and Webcast.

As a reminder, all participants are in a listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. (Operator Instructions)

(Technical Difficulty) call over to Jaspreet Dehl, Chief Financial Officer. Please go ahead Ms. Dehl.

Jaspreet Dehl

Thank you, operator and good morning, everyone. Welcome to the Brookfield Business Partners' 2018 year-end conference call. Before we begin I'd like to remind you that in responding to questions and in talking about our growth initiative and our financial and operating performance, we may make forward-looking statements. These statements are subject to known and unknown risks and future results may differ materially. For further information on known risk factors, I would encourage you to review our filings with the securities regulators in Canada and the U.S., which are available on our website.

On the call with me today is Cyrus Madon, Chief Executive Officer; and Peter Gordon, our Chief Operating Officer. I will pass the call over to Cyrus to provide an update on the business after which Peter will provide an operational update for BRK Ambiental our wastewater business in Brazil. And finally I will discuss the highlights of our financial results for the 2018 fiscal year.

I'll now pass the call over to Cyrus.

Cyrus Madon

Thanks Jaspreet and thanks everyone for joining us today. 2018 was another successful year for our business. Our strong growth reflects contribution of our recent -- most recent acquisitions as well as ongoing improvements to our business and organic growth of our business. In addition to strong financial results, we invested about $500 million in new acquisitions during the year of which our notable acquisitions were One Toronto, our gaming operation; Schoeller Allibert manufacturer of returnable plastic packaging and our largest acquisition was Westinghouse, a global leader, in fact, the global leader in the provision of services to the power industry. This is a truly high-quality company and we expect it to be a strong cash flow generator for many years.

During the year, we generated $1.5 billion from monetization activities from a combination of company sales, IPO and distributions. In November, we closed the sale of our Australian oil and gas business, Quadrant Energy, for net proceeds to BBU of $130 million. This was a very successful outcome for us. We also generated net proceeds of $120 million on the sale of our U.S. brokerage joint venture earlier in the year and at GrafTech, we partially monetized our investment through the sale of shares, which together with distributions from the company resulted in total cash proceeds of $1.2 billion to BBU. and we continue to own 27% of this company.

In addition to the closed acquisitions I've mentioned, we're continuing to work towards closing two new transactions. During the fourth quarter, we announced our agreement to acquire Johnson Controls Power Solutions business together with institutional investors. This is the leading global producer of advanced batteries for